Trading binary options is an exciting and often fast-paced way to make money. But before you can get to this point, there are some things that need to be taken care of. Banking is one of the biggest issues that traders need to address, and this includes both deposits and withdrawals to and from a trading account. If you’ve never used a binary options broker before, you likely have some questions about this. Hopefully, we can answer all of those questions here. We encourage you to speak with a customer service representative at the broker you’re thinking of using before you make a deposit if you have any further questions.
Making a deposit at a binary options broker is pretty simple, but it’s not always an immediate process. First, you need to create an account with the broker of your choice. You will need to supply your name, country of residence, email address, and create a password. These are the bare minimum things that all brokers require, although most require a bit more info than this.
Next, you will need to make your first deposit. Before you do so, be sure that this is the right broker for you. If they have a demo trading account, use it extensively before you make a decision. Some brokers will require that you make a deposit before you can gain access to the demo account. In these cases, make the minimum deposit. If you don’t like the broker’s platform after demo trading, just withdraw your deposit.
When you’re completely sure that you’re at the right broker, then go ahead with your deposit. Select the currency that you will be using. Once you do this, it is not something that can be changed. Usually, this is an easy decision. Now, decide how you’re going to fund your account. All brokers accept deposits via credit card and wire transfer, and most allow you to use various e-wallets like CashU, Skrill/MoneyBookers, and Neteller. The correct deposit method will vary from person to person. Credit cards and e-wallets ensure that funds go on your account instantly, but wire transfers take a bit longer. Again, the right method will depend on you and your needs.
When you are selecting a broker, you need to be positive that it’s the right broker for you. There are several things to consider, but the big ones include the legality and the reputation of the broker, whether or not the broker offers good rates, and whether or not they have the underlying assets and the trade types that you want to use. There are a number of other factors, but these are the big ones and should be your primary focus before looking at the other influential factors that will sway your decision.
The withdrawal process tends to be very easy if you go through a legal, regulated, and reputable broker. Most of the time, you will just need to click a few buttons, type in the amount that you wish to withdraw, click a few more buttons, and then wait for the money to show up in your account. Most reputable brokers can get your money to you in a week or less.
Any broker that is worth using will require you to submit paperwork before they will process your withdrawal request. This involves a government issued ID, proof of residency (a copy of your utility bill with your house address on it works fine here), and if you used a credit card, a copy of the front and back of your card. This is to prevent fraud and these documents have become the industry standard for binary options traders to prove that they are who they say they are.
Our recommendation? We suggest turning in your paperwork as soon as you can after you’ve made your initial deposit. This way, you’ll be sure to have all of the kinks worked out before you need to make a withdrawal. If there are any issues, a customer service rep will alert you and you can fix them before it becomes a pressing matter.
Things to Look Out For
Most brokers require that you use the same method that you used for a withdrawal that you used for the deposit. This can present a problem if you are withdrawing more than what you deposited with a credit card as most brokers will not allow you to withdraw more than what you deposited with a card because it presents them with extra fees. In this event, you will need to make your withdrawal to your card first, and then use an alternate withdrawal method afterward. Depending on the broker, this could create an extra fee for you. Plus, many brokers charge hefty withdrawal fees when you use a wire transfer or make more than one withdrawal in a month. More often than not, while a credit card deposit is a quick way to get started, it can create issues down the road. They are easily surpassed in most instances, but it’s important that you check with your broker first so there are no unpleasant surprises when it comes to getting your money back where it belongs: in your pocket.
Another thing to pay attention to is the trade through requirements that accompany bonuses. Because of changing laws, not as many brokers currently offer signup bonuses as used to, but some still do. If you have a bonus in your account, you might not have fully earned all of your bonus cash yet. There is typically a 30 to 40 times trade through bonus, so if you have a $1,000 bonus waiting in your account, you will need to have traded at least $30,000 before that $1,000 is yours to keep. Bonuses shouldn’t be a huge concern to you, but don’t be surprised if they aren’t as easy to get as you had originally thought. Keep this in mind as you go about making your withdrawal so you can avoid the disappointment of losing this.